NC ALTA Commitment for Title Insurance Revised 08-01-16

ALTA COMMITMENT FOR TITLE INSURANCE

ISSUED BY

STEWART TITLE GUARANTY COMPANY

NOTICE

IMPORTANT-READ CAREFULLY: THIS COMMITMENT IS AN OFFER TO ISSUE ONE OR MORE TITLE INSURANCE POLICIES. ALL CLAIMS OR REMEDIES SOUGHT AGAINST THE COMPANY INVOLVING THE CONTENT OF THIS COMMITMENT OR THE POLICY MUST BE BASED SOLELY IN CONTRACT.

THIS COMMITMENT IS NOT AN ABSTRACT OF TITLE, REPORT OF THE CONDITION OF TITLE, LEGAL OPINION, OPINION OF TITLE, OR OTHER REPRESENTATION OF THE STATUS OF TITLE. THE PROCEDURES USED BY THE COMPANY TO DETERMINE INSURABILITY OF THE TITLE, INCLUDING ANY SEARCH AND EXAMINATION, ARE PROPRIETARY TO THE COMPANY, WERE PERFORMED SOLELY FOR THE BENEFIT OF THE COMPANY, AND CREATE NO EXTRACONTRACTUAL LIABILITY TO ANY PERSON, INCLUDING A PROPOSED INSURED.

THE COMPANY'S OBLIGATION UNDER THIS COMMITMENT IS TO ISSUE A POLICY TO A PROPOSED INSURED IDENTIFIED IN SCHEDULE A IN ACCORDANCE WITH THE TERMS AND PROVISIONS OF THIS COMMITMENT. THE COMPANY HAS NO LIABILITY OR OBLIGATION INVOLVING THE CONTENT OF THIS COMMITMENT TO ANY OTHER PERSON.

COMMITMENT TO ISSUE POLICY

Subject to the Notice; Schedule B, Part I-Requirements; Schedule B, Part II-Exceptions; and the Commitment Conditions, STEWART TITLE GUARANTY COMPANY, a Texas corporation (the "Company"), commits to issue the Policy according to the terms and provisions of this Commitment. This Commitment is effective as of the Commitment Date shown in Schedule A for each Policy described in Schedule A, only when the Company has entered in Schedule A both the specified dollar amount as the Proposed Policy Amount and the name of the Proposed Insured.

If all of the Schedule B, Part I-Requirements have not been met within six months after the Commitment Date, this Commitment terminates and the Company's liability and obligation end.

COMMITMENT CONDITIONS

1. DEFINITIONS

(a) "Knowledge" or "Known": Actual or imputed knowledge, but not constructive notice imparted by the Public Records.

(b) "Land": The land described in Schedule A and affixed improvements that by law constitute real property. The term "Land" does not include any property beyond the lines of the area described in Schedule A, nor any right, title, interest, estate, or easement in abutting streets, roads, avenues, alleys, lanes, ways, or waterways, but this does not modify or limit the extent that a right of access to and from the Land is to be insured by the Policy.

(c) "Mortgage": A mortgage, deed of trust, or other security instrument, including one evidenced by electronic means authorized by law.

(d) "Policy": Each contract of title insurance, in a form adopted by the American Land Title Association, issued or to be issued by the Company pursuant to this Commitment.

(e) "Proposed Insured": Each person identified in Schedule A as the Proposed Insured of each Policy to be issued pursuant to this Commitment.

(f) "Proposed Policy Amount": Each dollar amount specified in Schedule A as the Proposed Policy Amount of each Policy to be issued pursuant to this Commitment.

(g) "Public Records": Records established under state statutes at the Commitment Date for the purpose of imparting constructive notice of matters relating to real property to purchasers for value and without Knowledge.

(h) "Title": The estate or interest described in Schedule A.

2. If all of the Schedule B, Part I-Requirements have not been met within the time period specified in the Commitment to Issue Policy, this Commitment terminates and the Company's liability and obligation end.

3. The Company's liability and obligation is limited by and this Commitment is not valid without:

(a) the Notice;

(b) the Commitment to Issue Policy;

(c) the Commitment Conditions;

(d) Schedule A;

(e) Schedule B, Part I-Requirements; [and]

(f) Schedule B, Part II-Exceptions[; and

(g) a counter-signature by the Company or its issuing agent that may be in electronic form].

4. COMPANY'S RIGHT TO AMEND

The Company may amend this Commitment at any time. If the Company amends this Commitment to add a defect, lien, encumbrance, adverse claim, or other matter recorded in the Public Records prior to the Commitment Date, any liability of the Company is limited by Commitment Condition 5. The Company shall not be liable for any other amendment to this Commitment.

5. LIMITATIONS OF LIABILITY

(a) The Company's liability under Commitment Condition 4 is limited to the Proposed Insured's actual expense incurred in the interval between the Company's delivery to the Proposed Insured of the Commitment and the delivery of the amended Commitment, resulting from the Proposed Insured's good faith reliance to:

(i) comply with the Schedule B, Part I-Requirements;

(ii) eliminate, with the Company's written consent, any Schedule B, Part II-Exceptions; or

(iii) acquire the Title or create the Mortgage covered by this Commitment.

(b) The Company shall not be liable under Commitment Condition 5(a) if the Proposed Insured requested the amendment or had Knowledge of the matter and did not notify the Company about it in writing.

(c) The Company will only have liability under Commitment Condition 4 if the Proposed Insured would not have incurred the expense had the Commitment included the added matter when the Commitment was first delivered to the Proposed Insured.

(d) The Company's liability shall not exceed the lesser of the Proposed Insured's actual expense incurred in good faith and described in Commitment Conditions 5(a)(i) through 5(a)(iii) or the Proposed Policy Amount.

(e) The Company shall not be liable for the content of the Transaction Identification Data, if any.

(f) In no event shall the Company be obligated to issue the Policy referred to in this Commitment unless all of the Schedule B, Part I-Requirements have been met to the satisfaction of the Company.

(g) In any event, the Company's liability is limited by the terms and provisions of the Policy.

6. LIABILITY OF THE COMPANY MUST BE BASED ON THIS COMMITMENT

(a) Only a Proposed Insured identified in Schedule A, and no other person, may make a claim under this Commitment.

(b) Any claim must be based in contract and must be restricted solely to the terms and provisions of this Commitment.

(c) Until the Policy is issued, this Commitment, as last revised, is the exclusive and entire agreement between the parties with respect to the subject matter of this Commitment and supersedes all prior commitment negotiations, representations, and proposals of any kind, whether written or oral, express or implied, relating to the subject matter of this Commitment.

(d) The deletion or modification of any Schedule B, Part II-Exception does not constitute an agreement or obligation to provide coverage beyond the terms and provisions of this Commitment or the Policy.

(e) Any amendment or endorsement to this Commitment must be in writing [and authenticated by a person authorized by the Company].

(f) When the Policy is issued, all liability and obligation under this Commitment will end and the Company's only liability will be under the Policy.

7. IF THIS COMMITMENT HAS BEEN ISSUED BY AN ISSUING AGENT

The issuing agent is the Company's agent only for the limited purpose of issuing title insurance commitments and policies and for the disbursement of settlement funds but limited to the coverage of the issuing agent provided under the CPL as set out in the Statue O.C.G.A. 33-7-8.1(b). The issuing agent is not the Company's agent for the purpose of providing closing or settlement services.

8. PRO-FORMA POLICY

The Company may provide, at the request of a Proposed Insured, a pro-forma policy illustrating the coverage that the Company may provide. A pro-forma policy neither reflects the status of Title at the time that the pro-forma policy is delivered to a Proposed Insured, nor is it a commitment to insure.

9. ARBITRATION

The Policy contains an arbitration clause. All arbitrable matters when the Proposed Policy Amount is $2,000,000 or less shall be arbitrated at the option of either the Company or the Proposed Insured as the exclusive remedy of the parties. A Proposed Insured may review a copy of the arbitration rules at <http://www.alta.org/arbitration>.

STEWART TITLE GUARANTY COMPANY

All notices required to be given the Company and any statement in writing required to be furnished the Company shall be addressed to it at P.O. Box 2029, Houston, Texas 77252-2029

COMMITMENT
SCHEDULE A

Transaction Identification Data for reference only:

Issuing Agent:
Issuing Office:
ALTA^® Universal ID:
Loan ID Number:
Commitment Number:
Issuing Office File Number:
Property Address:
Revision Number:

1.       Commitment Date:

2.        Policy or Policies to be issued:

(a) ALTA Owners Policy (2006) $______

Proposed Insured: ______

(b) ALTA Loan Policy (2006) $______

Proposed Insured: ______

3. The estate or interest in the land described or referred to in this Commitment and covered herein is ________ (Identify estate covered, i.e. fee, leasehold, etc.)

4. Title to the _______ estate or interest in the Land is at the Commitment Date vested in: ________________

5. The Land is described as follows:

See attached Exhibit "A" incorporated herein.

STEWART TITLE GUARANTY COMPANY

By: ________________________________

Authorized Signatory

 

COMMITMENT
SCHEDULE B, PART I
REQUIREMENTS

File No. ____________________________

All of the following Requirements must be met:

1.    The Proposed Insured must notify the Company in writing of the name of any party not referred to in this Commitment who will obtain an interest in the Land or who will make a loan on the Land. The Company may then make additional Requirements or Exceptions.

2.    Pay the agreed amount for the estate or interest to be insured.

3.    Pay the premiums, fees, and charges for the Policy to the Company.

4.    Documents satisfactory to the Company that convey the Title or create the Mortgage to be insured, or both, must be properly authorized, executed, delivered, and recorded in the Public Records.

(Documents to be listed here)

5.    The Company requires the payment of all taxes and assessments and any penalties and interest, due and payable at closing.

6.    If the closing is a consumer or residential matter, the closing must be supervised by a licensed North Carolina attorney. A Certification of North Carolina Attorney must be obtained.

7.    Receipt of premium and final title opinion from a non-employee, non-agent Stewart approved North Carolina licensed attorney (along with copies of the executed and recorded warranty deed and first three pages and signature pages of the deed of trust, if applicable) to issue a final policy.

8.    Receipt of applicable NCLTA forms below (or substantially similar form approved by Company prior to closing), completed, executed and notarized, as follows:

NO RECENT (last 120 days) OR CONTEMPLATED CONSTRUCTION:

NCLTA FORM 1 (Owner Affidavit) from every seller (on sale) or borrower (on refinance) who has not contracted for recent or contemplated improvements on the Land or for a construction loan.

RECENTLY COMPLETED IMPROVEMENTS:

Non-MLA project:  NCLTA FORM 2 (Owner/Contractor Affidavit, Lien Waiver, and Indemnity) from every Owner and every Contractor.

MLA project: 

(1)  Receipt of proof satisfactory to the Company that prior to closing or prior to first contracting for construction (whichever occurs first),

a.  A Lien Agent was designated on the LiensNC.com website, AND

b.  The Appointment of Lien Agent was posted at the Land.

(2)  NCLTA FORM 5 (Owner Affidavit) from every Owner; AND

(3)  NCLTA FORM 6 (MLA Lien Waiver) from every PLC-MLA.

CONSTRUCTION CONTEMPLATED OR IN PROCESS:

Non-MLA project:  NCLTA FORM 3 (Owner/Contractor Affidavit, Indemnity and Lien Subordination) (for lender coverage only) from every Owner and every Contractor

MLA project:

(1)  Receipt of proof satisfactory to the Company that prior to closing or prior to first contracting for construction (whichever occurs first):

a.  A Lien Agent was designated on the LiensNC.com website, AND

b.  The Appointment of Lien Agent was posted at the Land;

(2)  NCLTA FORM 5 (Owner Affidavit) from every Owner; AND;

(3)  NCLTA FORM 6 (MLA Lien Waiver) or NCLTA FORM 7 (MLA Subordination of Liens) from every PLC-MLA.

MLA NOT Appointed Prior to Contracting for Labor Services or Materials

In all cases in which an MLA was required but not (timely) appointed, prior approval and terms of coverage (if any) by Company underwriting counsel is required.

9.    Attorney certification that any and all homeowners’ association dues and assessments, if any, are paid current.

10.  Buyer/borrower’s spouse, if any, to execute Deed of Trust.

11.  Seller’s spouse, if any, to execute deed.

12.  The Commercial Real Estate Broker Lien Act applies to a sale or lease of commercial real estate; therefore, disclosure by the seller and buyer (lessor and lessee) or by the borrower when there is no sale required, in affidavit form stating (1) whether or not broker’s services have been engaged with regard to the management, sale, purchase, lease, or other conveyance of any interest in the Property and (2) whether or not a notice of lien for any such services have been received.  Where the possibility of a right to file a broker’s lien exists, satisfaction (waiver, estoppel statement and payment) of such a lien right must occur prior to or at closing.  If not so satisfied, an exception to any such right to a broker’s lien will appear in Schedule B of the Policy.

13.   Payment of taxes as follows:

a. 20 ___ State and County property taxes due in the amount of $ _________. Tax Map Parcel No._____.

b. 20 ___ City property taxes due in the amount of $ ________. Tax Map Parcel No. _____.

14.   Payment, satisfaction and cancellation of record of the following Deeds of Trust:

a.  Deed of Trust from ______ to ______, dated ______, and recorded ______, in Deed Book ______, Page ______, ______ County, North Carolina Register of Deeds office, in the original principal amount of $______.

(Additional Requirements may be listed here by number)

 

COMMITMENT
SCHEDULE B, PART II
EXCEPTIONS

File No. ____________________________

THIS COMMITMENT DOES NOT REPUBLISH ANY COVENANT, CONDITION, RESTRICTION, OR LIMITATION CONTAINED IN ANY DOCUMENT REFERRED TO IN THIS COMMITMENT TO THE EXTENT THAT THE SPECIFIC COVENANT, CONDITION, RESTRICTION, OR LIMITATION VIOLATES STATE OR FEDERAL LAW BASED ON RACE, COLOR, RELIGION, SEX, SEXUAL ORIENTATION, GENDER IDENTITY, HANDICAP, FAMILIAL STATUS, OR NATIONAL ORIGIN.

The Policy will not insure against loss or damage resulting from the terms and provisions of any lease or easement identified in Schedule A, and will include the following Exceptions unless cleared to the satisfaction of the Company:

A. Defects, liens, encumbrances, adverse claims or other matters, if any, created, first appearing in the public Records or attaching subsequent to the effective date hereof but prior to the date the proposed Insured acquires for value of record the estate or interest or mortgage thereon covered by this Commitment.

B. Standard Exceptions:

1.    Rights or claims of parties in possession not shown by the public records.

2.    Easements, or claims of easements, not shown by the public records.

3.    Any lien, or right to a lien, for services, labor or materials heretofore or hereafter furnished, imposed by law and not shown by public records.

4.    Rights of dower, homestead or other marital rights of the spouse, if any, of any individual insured.

5.    Taxes or special assessments which are not shown as existing liens by the public records.

6.    Such state of facts as would be disclosed by a current, accurate survey and inspection of the insured premises.

C. Special Exceptions:

1. All taxes for 20___ and subsequent years, which are a lien not yet payable.

2. Any inaccuracy in the area, square footage, or acreage of land described in Schedule A.. The Company does not represent or insure the area, square footage, or acreage of the land.

3. Retroactive or additional taxes or assessments, and interest and penalties, which may be imposed by adjustment, reappraisal, reassessment, appeal, amendment to the tax records, or otherwise.

4. Rights of upper and lower riparian owners in and to the waters of the creeks and branches crossing subject property and the natural flow thereof without diminution.

5. Minerals of whatsoever kind, subsurface and surface substances, including but not limited to kaolin, coal, lignite, oil, gas, uranium, clay, rock, sand and gravel in, on, under and that may be produced from the Land, together with all rights, privileges, and immunities relating thereto whether or not listed in Schedule B. The Company makes no representation as to the present ownership of any such interests.

6. Terms, provisions, covenants, conditions, restrictions, easements, charges, assessments and liens provided in the Covenants, Conditions and Restrictions recorded in Deed Book _____, Page _____, _____ County, North Carolina Registry, but omitting any covenant, condition or restriction, if any, based on race, color, religion, sex, handicap, familial status, or national origin unless and only to the extent that the covenant, condition or restriction (a) is exempt under Title 42 of the United States Code, or (b) relates to handicap, but does not discriminate against handicapped persons. As this instrument has been amended or modified from time to time.

7. Any and all matters as disclosed by plat of survey recorded in Plat Book ____, Page ____, _____ County, North Carolina Registry.

8. Any and all matters as disclosed by that certain survey entitled "_____", prepared by _____,  dated _____, last revised _____, including but not limited to:

(Additional Exceptions may be listed here by number)

EXHIBIT "A"

This page is only a part of a 2016 ALTA^® Commitment for Title Insurance[ issued by ________]. This Commitment is not valid without the Notice; the Commitment to Issue Policy; the Commitment Conditions; Schedule A; Schedule B, Part I—Requirements; [and] Schedule B, Part II—Exceptions[; and a counter-signature by the Company or its issuing agent that may be in electronic form].

 

Copyright 2006-2016 American Land Title Association. All rights reserved.

The use of this Form (or any derivative thereof) is restricted to ALTA licensees and

ALTA members in good standing as of the date of use. All other uses are prohibited.

Reprinted under license from the American Land Title Association.